Home / News / S Arabia's Takween completes terms for sale of SAAF stake to PRC firm

S Arabia's Takween completes terms for sale of SAAF stake to PRC firm

16 Jul '21

1 min read

Pic: Takween Advanced Industries

Saudi Arabia's Takween Advanced Industries recently announced completing the sale of its majority stake in its subsidiary Advanced Fabrics Factory Company (SAAF) to Chinese firm JOFO Nonwoven Co. SAAF manufactures recycled polypropylene granules and non-woven fabric. Takween manufactures and sells plastic packaging products and non-woven fabrics.

“The transaction price is based on a total value of 337.5 million Saudi riyals—$90 million—for 100 per cent of the shares of SAAF.” Takween said in a stock exchange filing.

The total transaction cash inflow will be 304.7 million riyals ($81 million), comprising a net purchase price amount of 197.64 million riyals and reimbursement of working capital of 107.06 million riyals, the company said.

Dubai Financial Services Authority-regulated Himmah Capital acted as financial advisor to Takween on the transaction, according to media reports in the Middle East.

Takween, listed in the Saudi stock exchange Tadawul, had signed a non-binding memorandum of understanding to sell 70 per cent of SAAF to JOFO Nonwoven last year.

Fibre2Fashion News Desk (DS)